There are a few components to take into consideration when choosing the location of your EMS manufacturing partner.
Where are you end market locations, your base of consumption?
Depending on your OEM programs, you could have a high gross margin program with low-volume production. In this example, your end markets may not influence your geographic EMS manufacturing decision too much. But you’ll most likely still want to optimize your costs where you do your manufacturing and you probably want to keep a single distribution center if you don’t have a vendor supply chain that’s global.
Conversely, if you have a low-cost, high-volume OEM program and your product is large or heavy (think: increased freight costs) it’s going to be more important that you have multiple distribution centers for fulfillment points close to your end markets.
For the latter, time-to-market also plays into your decision. So, in addition to a bigger product and higher freight costs, be aware it could also take longer for you to move your product from your manufacturing location to your markets.
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